This 4×6 index card has all the financial advice you’ll ever need • Hacker News Board

Re: This 4×6 index card has all the financial advice you’ll ever need

#261

Post by alok-g » Wed, Sep 18, 2013, 2:36 PM UTC

stephenbez wrote: post #257

alok-g wrote: post #201

Earlier quoted context omitted.

I'll have to read the book for more but the math you explain seems incomplete. The earlier I retire, the more would be my expected number of years in retirement (assuming a given life expectancy). If in one scenario my retirement is 40 years away and I need to save for 20 more years, then in he other scenario where I retire in ten years, I need to save for fifty! That's a factor of 2.5 in this example! Ignoring growt…

I think the idea is that if you have a large pile of money and take out a small portion of it each year to live on, due to growth the money will last indefinitely. So if you have 25 years of living expenses and each year take out 1 year of living expenses, that is 4% of your money. If you earn ~4% a year then your account balance stays the same. The 4% number matches the 4% rule: http://www.investopedia.com/terms/f/f…

Thanks. This answers my original question too.

Re: This 4×6 index card has all the financial advice you’ll ever need

#262

Post by Dylan16807 » Wed, Sep 18, 2013, 5:33 PM UTC

timr wrote: post #258

Dylan16807 wrote: post #121

Earlier quoted context omitted.

>Yeah. We aren't. This whole thread spawned because the claim was that you can retire in 10 years if you save 66% of your income. I don't understand. Retiring after 10 years means you'll be retired for around 50 years, doesn't it?

If you lose your nest egg in year 10 because the market takes a dump, guess what? You're not retired anymore. It's why real-life retired people don't put their entire savings in the stock market. Retirement funds tend to have most of your money in fixed-rate securities by the time you actually quit working.

'lose'

If you had enough money to live off for fifty years, the market taking a dump isn't going to wipe it out. Especially if you invested part of it before the market got high, and your total without accounting for dumps would have lasted seventy years.

Re: This 4×6 index card has all the financial advice you’ll ever need

#263

Post by notdrunkatall » Thu, Sep 19, 2013, 6:27 AM UTC

cperciva wrote: post #52

notdrunkatall wrote: post #34

Except for the 'never buy a security' bit, I fully agree.

Do you think you can beat the market? Are you a professional stock market trader? If you answered yes to the first question but no to the second, why?

I don't think I can beat the market, I do beat the market. I've beat it every year since I started investing in 2006.

No, I'm not a professional.

Because that's not what I want to do with my life.

Re: This 4×6 index card has all the financial advice you’ll ever need

#264

Post by ckeck » Fri, Sep 20, 2013, 5:44 PM UTC

Correction: Don't have a credit card bill to begin with.

Let the excuses and reasons for them fly, think whatever...fact is they are not necessary. While some smaller percentage of people can be responsible, for many it just invites problems. Don't get one in the first place.